ICG reduces net debt to lowest level since 1993

FERRY and freight services group Irish Continental Group (ICG) cut its net debt by nearly €20 million – to its lowest level for 16 years – during the third quarter of the year, but said yesterday that the weak sterling versus the euro is keeping business conditions challenging.

In a trading update covering the first nine months of the year, issued yesterday, ICG said that net debt was down to €30m from €48.5m at the end of June. This, it added, reflects “the group’s very strong cash flow characteristics”.

However, for the first nine months of the year, group revenue amounted to €197.8m (down from €265.5m for the same period in 2008); operating profit was down from €37.5m to €24.1m, year-on-year and EBITDA (earnings before interest, tax, depreciation and amortisation) was down from €55.9m to €41.7m.

“Freight volumes continue to reflect subdued trading activity, while passenger and car volumes have remained more resilient and have responded favourably to our marketing initiatives,” the group said in the statement.

ICG said that passenger numbers have risen by 1% between the beginning of July and the end of October, with freight volumes down by 16% and container freight down 19%.

In the year to date, the number of passengers on its ferries is down by 4%, on a year-on-year basis, at 1.26m, while car numbers are down by 2% and freight volumes have declined by 20%.

ICG gained 23c, yesterday, to close at €13.23.